That is also my understanding. But in actual practice, there are no affordable remedies available to very small individual investors. No
competent securities attorney has the time of day for anyone who lost less than $100,000 minimally, of which they figure to take 33-40%. And the S.E.C. acts on behalf of the government, i think, but it's not clear what they can do to "make whole" individual investors. Maybe in a high profile case, investors get something back, but probably only a small fraction of what they lost after a multi-year wait. Better to put shareholder pressure to get the company on the right path to future profitability, if that is possible.